SALARY PACKAGING CARD PRODUCT DISCLOSURE STATEMENT March 2018
CONTENTS PART ONE - GENERAL TERMS AND CONDITIONS 1. IMPORTANT INFORMATION... 2 2. INTRODUCTION... 2 3. USING YOUR ACCOUNT... 2 4. END OF FRINGE BENEFITS TAX YEAR... 3 5. SALARY PACKAGING... 3 6. ELIGIBILITY AND CONDITIONS... 3 7. RISKS... 3 8. BEFORE YOU USE YOUR SALARY PACKAGING CARD.. 3 9. APPLICATION OF CODES... 4 10. SIGNING YOUR CARD... 4 11. REPORTING THE LOSS OR THEFT OF YOUR CARD...4 12. USING YOUR CARD... 5 13. USING YOUR CARD OUTSIDE AUSTRALIA... 6 14. TRANSACTION LIMITS... 6 15. AUTHORISATIONS AND PROCESSING OF TRANSACTIONS... 6 16. ADDITIONAL CARDS... 6 17. RENEWAL OF YOUR CARD... 7 18. CANCELLATION OF YOUR CARD... 7 19. CONDITIONS AFTER CANCELLATION OR EXPIRY OF YOUR CARD... 7 20. YOUR LIABILITY IN CASE YOUR CARD IS LOST OR STOLEN OR IN THE CASE OF UNAUTHORISED USE... 7 21. VISA ZERO LIABILITY... 8 22. RESOLVING ERRORS AND DISPUTES... 9 23. MALFUNCTION... 10 24. STATEMENTS AND RECEIPTS... 10 25. FEES AND CHARGES... 10 26. GOVERNMENT FEES AND CHARGES... 10 27. CHANGES TO CONDITIONS OF THIS PRODUCT... 10 28. OTHER GENERAL CONDITIONS... 11 29. PRIVACY... 11 30. THIRD PARTY DISCLOSURE... 11 31. ANTI-MONEY LAUNDERING AND COUNTER- TERRORISM FINANCING (AML)... 11 32. DEFINITIONS... 11 33. INTERPRETATION... 12 PART TWO - QANTAS REWARDS PROGRAM 1. BANKVIC SALARY PACKAGING QANTAS REWARDS PROGRAM... 13 2. HOW DO YOU EARN QANTAS POINTS?... 13 3. WHAT RESTRICTIONS APPLY TO EARNING QANTAS POINTS?... 13 4. WHEN DO THESE TERMS AND CONDITIONS APPLY?.. 13 5. BANKVIC SALARY PACKAGING QANTAS REWARDS PROGRAM... 13 6. QANTAS POINTS EXCLUSIONS AND CANCELLATIONS.. 14 7. DISPUTED STATEMENTS AND GENERAL DISPUTE RESOLUTION PROCEDURE... 15 8. TERMINATION... 15 9. CHANGES TO THESE TERMS AND CONDITIONS AND THE BANKVIC SALARY PACKAGING QANTAS REWARDS PROGRAM... 15 10. HOW DO WE COMMUNICATE WITH EACH OTHER?.. 16 11. YOUR RESPONSIBILITY TO PAY ANY COSTS... 16 12. LIMITATION ON LIABILITY... 16 13. ADDITIONAL PRIVACY ACKNOWLEDGMENT AND CONSENT... 16 14. DEFINITIONS... 16 PART THREE - FEES AND CHARGES FEES AND CHARGES... 18 VALID FROM MARCH 2018 This Product Disclosure Statement applies to the Salary Packaging Card as issued by Police Financial Services Limited ABN 33 087 651 661 AFSL 240293 Level 3, 215 Spring Street, Melbourne Vic 3000 T 13 63 73 E info@bankvic.com.au W bankvic.com.au BPAY registered to BPAY Pty Ltd ABN 69 079 137 518. 1
PART ONE GENERAL TERMS AND CONDITIONS 1. IMPORTANT INFORMATION These cards are offered to you on the terms set out in this Product Disclosure Statement ( PDS ). They govern the use of the cards and all transactions on the accounts. They relate to the Meals & Entertainment and Everyday Expenses Cards. Your Employer has entered into an agreement for us to issue these cards. We are not responsible for your Employer making deductions from your salary, crediting your account or for any tax liability that may arise. An account will be opened in your name and your Employer will deposit funds to it. However, you are not entitled to use the funds in the account until you use a card to enter into an authorised transaction. The funds in the account belong to the Employer and are available to make authorised purchases only. Your salary deduction can only be used on your card after your Employer has deposited funds to the account opened in your name. You may only use your card while you are employed by your current Employer. When your employment ends, your eligibility ends and we may cancel the card and return any funds in your account to your Employer. If there is an overpayment to an account, or there are funds remaining at the end of the Fringe Benefits Tax year, we may repay the overpayment or surplus to your Employer. When a card or a supplementary card (if applicable) is used in a transaction to acquire goods and/or services, we will process the transaction in accordance with the agreement we have with your Employer, including debiting the account to apply the funds deposited by your Employer in the manner directed by your Employer. By using your card, you consent to us doing so. We make no representation or warranty about your tax liability relating to the use of your cards. You should obtain your own legal and accounting advice. These cards are operated between the Employer, the FBT scheme and yourself with BankVic providing the card accounts. 2. INTRODUCTION BankVic is the Issuing Bank appointed by your Employer who has permitted you to open accounts, under which Salary Packaging Card Accounts ( Cards ) will be issued to individuals (and Additional Cardholders) who opt to use either or both of the following cards: CARD* Meals & Entertainment Visa debit card Everyday Expenses Visa debit card PURPOSE Your Meals & Entertainment Card can be used to pay for restaurant meals and other eligible entertainment. Your Everyday Expenses Card can be used to access your benefit funds for most legal purchases, including everyday expenses such as groceries, petrol, clothing or bills * The generic name of the Cards may differ slightly where BankVic agrees to change the name on the card at the Employer s request. This will not change the operation or use of the Card. 3. USING YOUR ACCOUNT You will be notified by your Employer of specific restrictions that apply to use of the Card by each Cardholder and Additional Cardholder. A general summary of transaction limitations is provided below. Card purchases (point of sale) Card paywave (point of sale) Card online purchases (ecommerce) Direct Debit (Everyday Expenses Card) ü ATM Cash Withdrawals Cash Advances Branch Cash Withdrawal Balance transfers BPAY Deposits to card account (other than from Employer) Restricted Merchants on both cards* * Use of the cards may be restricted to merchants approved by the Australian Taxation Office and / or your Employer. You may only use your Salary Packaging Card (Meals & Entertainment) to pay for meals and entertainment expenses, within the meaning given to that expression in the Fringe Benefits Tax Assessment Act 1986. Meals and entertainment expenses are purchases representing entertainment by way of food or drink, or purchases of accommodation or travel in connection with, or for the purpose of facilitating entertainment. The Salary Packaging Card (Everyday Expenses) is available for use with most eligible purchases. A secondary card ( Additional Card ) is also available for both the Everyday Expenses Card and the Meals & Entertainment Visa card, to the primary cardholder s account. ü ü ü Yes 2
Transactions will be declined if there are insufficient funds in the account, or are for purchases which your Employer has disallowed to be paid from the Salary Packaging Cards. It is recommended that you check with your Employer prior to your purchase to avoid putting up a manual claim or experiencing a declined transaction. Your Employer will be able to answer any questions regarding what are allowed or blocked transactions. Any credit balance will accumulate and be available for spending until the end of March each year. You may only use your Card while employed by your current Employer. You must tell us as soon as your employment ends. When your employment ends, your eligibility ends and we may cancel your cards and return any funds in your account to your Employer. Also, if there is an overpayment to an account, we may, at the request of your Employer, return it to your Employer. We are not responsible for any amount we repay to your Employer. The following features are available on the Card accounts: Check balances and statements through our 24-hour online banking by accessing: 1. Internet banking 2. Mobile banking including the BankVic App EFTPOS and paywave transactions Ability to earn Qantas Frequent Flyer points on eligible transactions No interest is payable on the Card accounts. 4. END OF FRINGE BENEFITS TAX YEAR The Card can be used from the time the Card is activated until the fifth business day before the end of the Fringe Benefit Tax year when your Card will be deactivated. This is to allow any transactions made by you or your Additional Cardholder to be cleared and settled by Visa. Any funds not utilised will be transferred back to your Employer. In the new Fringe Benefits Tax year, your Card will be reactivated once your Employer has deposited funds into the account. 5. SALARY PACKAGING We make no representation or warranty about your tax liability relating to the use of the Salary Packaging Cards. For more details of the tax regulations, benefits and limits of salary to be packaged please refer to your Employer and/ or financial adviser. 6. ELIGIBILITY AND CONDITIONS To be eligible for a Salary Packaging Card, the Applicant must be authorised by their Employer. Your Salary Packaging Card is issued as a Visa Card, which you use to pay for transactions directly from your transaction account. This is the account to which your Employer will transfer agreed amounts. Other conditions include: All funds in the account remain the property of the Employer and we may remit them to your Employer when we see it appropriate, when your Employer tells us or when your current employment with the Employer ends. Your Employer may elect to choose a slightly different name for each card type. This does not impact your Fringe Benefit Tax entitlements or obligations, nor does it change the way your card operates. 7. RISKS Use of the Salary Packaging Cards for purposes not authorised by your Employer or outside the scope of Australian Taxation Office guidelines may result in you incurring additional taxation liabilities or Employer charges (which will be collected either as additional salary packaging amounts or directly from you, depending on the circumstances). Cardholders will need to understand the obligations relating to their Employer s contributions and their permitted transactions. All funds deposited within the accounts remain the property of the Employer. Unused funds will be returned to the Employer at the end of the Fringe Benefits Tax Year (31 March), if you are no longer employed by your Employer, and at the request of the Employer at any other time. Unauthorised transactions can happen using the Card if it is lost or stolen, a Personal Identification Number ( PIN ) is revealed to any other person, or as a result of fraud. You might not be able to get the money back if unauthorised or unintended transactions occur. If electronic networks enabling the use of the Card are unavailable, you may not be able to undertake transactions or get information about the Card until the network becomes available again. 8. BEFORE YOU USE YOUR SALARY PACKAGING CARD Please read these terms and conditions applying to: all transactions initiated by you through an Electronic Banking Terminal (which in this PDS refers to EFTPOS devices) by the combined use of your Card and a Personal Identification Number (PIN) or signature; and all other transactions (including internet transactions and Visa paywave transactions) effected with the use of your Card or Card number. When you first receive your Card(s) mailed to your Mailing Address indicated in your BankVic Application Form for Salary Packaging (or via your Employer), your Card(s) are ready for use. The first transaction you complete using your Salary Packaging Card, will be taken as your agreement to comply with the terms and conditions set out in this PDS. You should be aware that a transaction may arise on your Card prior to you activating your Card (if required by us) in circumstances where a transaction is conducted manually or is below the Floor Limit where no electronic approval is required. In these circumstances, the balance in your 3
Account will be reduced by the amount of any transaction that is made in these circumstances. These conditions apply to you and any Additional Cardholder. If you do not agree with the terms of these conditions, do not: activate your Card (if activation is required by us) or use it (or allow anyone else to use or activate your Card); or permit an Additional Cardholder to use his or her Card. Instead, return all Cards to us (cut in half for your protection, including cutting in half any chip on your Card). If you fail to properly safeguard your Card and PIN you may increase your liability for unauthorised use (refer to section 10 for a list of circumstances where you may be held liable for unauthorised use of your Card). If these conditions are not clear to you, contact us before using your Card or alternatively seek independent advice from your accountant or lawyer. Information on current fees and charges that apply in relation to the use of your Card can be obtained on our website bankvic.com.au or by contacting us on 13 63 73. Words that are capitalised are defined in section 32 below. IMPORTANT POINTS TO REMEMBER TO SAFEGUARD YOUR ACCOUNT If you fail to safeguard your Card or PIN, you may increase your liability arising from unauthorised Card use. We therefore strongly recommend that you: sign your Card immediately when you receive it; memorise your PIN and never store it with or near your Card; never write your PIN on your Card; never lend your Card to anyone; never tell anyone your PIN or let anyone see it, including any family member or friend; don t choose a PIN that is easily identified with you, e.g. your birth date, an alphabetical code which is a recognisable part of your name or your car registration; don t choose a PIN that is merely a group of repeated numbers; try to prevent anyone else seeing you enter your PIN into an EFTPOS Device ( i.e. an Electronic Banking Terminal ); never leave your Card unattended, e.g. in your car or at work; immediately report the loss, theft or unauthorised use of your Card to the Visa card 24hr EMERGENCY HOTLINE on Free Call 1800 621 199; if outside of Australia please call Visa Global Customer Assistance using Visa s worldwide network of tollfree numbers available on our and Visa s websites (www.visa.com.au). before you leave on a trip make note of the toll-free emergency number for your destination and keep it with you, but separate from your card. keep a record of the Visa card 24 hour EMERGENCY HOTLINE telephone numbers with your usual list of emergency telephone numbers; examine your account statement as soon as you receive it to identify and report, as soon as possible, any instances of unauthorised use; and for security reasons, on the expiry date, destroy your Card by cutting it diagonally in half including cutting in half any chip. Refer to section 20 below for a list of circumstances where you may be held to be liable for loss caused by unauthorised transactions. Any liability for losses resulting from unauthorised transactions will be determined in accordance with section 20 below, rather than the security measures listed above, which are guidelines only. 9. APPLICATION OF CODES We warrant we will comply with the requirements of the epayments Code (the Code) as established or replaced from time to time by the Australian Securities and Investments Commission (ASIC). You can find a copy of the Code on ASIC s website (www.asic.gov.au). If you would like to know which industry codes of practice apply to the use of your Card or you would like to obtain a copy of any relevant code, you should contact us. 10. SIGNING YOUR CARD You agree to sign your Card as soon as you receive it and before using it, as a means of preventing unauthorised use. 11. REPORTING THE LOSS OR THEFT OF YOUR CARD If you believe your Card or PIN record has been lost or stolen, or your PIN has become known to someone else, you should IMMEDIATELY report this by contacting: DURING NORMAL BUSINESS HOURS BankVic 13 63 73 (refer to our website for a list of the normal business hours) OUTSIDE NORMAL BUSINESS HOURS Visa card 24hr EMERGENCY HOTLINE Free Call - 1800 621 199 If you contact the Visa card 24hr Emergency Hotline: you will be given a reference number which you should retain as evidence of the date and time of your report; and you should advise us, as soon as you can, that you have made a report to the Visa Card 24-hour Emergency Hotline. If for any reason any of the above methods of notification is unavailable, any losses occurring due to non-notification will be our liability. To avoid further losses you are required 4
to continue to try to provide notification of your lost or stolen Card by using one of the methods referred to above. Providing you continue to try and use reasonable endeavours having regard to your own individual circumstances to notify us or the Visa Card 24-hour Emergency Hotline, we will continue to be liable for any loss occurring as a result of further unauthorised use of your Card. If your Card is reported as lost or stolen, we will issue to you a replacement Card. You must give us a reasonable time to arrange cancellation and the issue of a replacement Card. If the loss, theft or misuse occurs OUTSIDE AUSTRALIA you must notify a financial institution displaying the Visa logo and you must also then confirm the loss, theft or misuse of your Card with us by telephone or priority paid mail as soon as possible. Alternately if outside of Australia please call Visa Global Customer Assistance using Visa s worldwide network of tollfree telephone numbers available on our and Visa s websites (www.visa.com.au). Before you leave on a trip, make a note of the toll-free emergency number for your destination and keep it with you, but separate from your card. 12. USING YOUR CARD Your Card is generally accepted anywhere the Visa logo is displayed in Australia or overseas. We will advise you: what transactions your Card will enable you to perform at an Electronic Banking Terminal; which Electronic Banking Terminal networks you may use; and what mail, internet or telephone transactions you may carry out with your Card by quoting your Card number. Your Card may be used for these types of Electronic Funds Transfer (EFT) Transactions: paying merchants who offer EFTPOS facilities in Australia; and online transactions performed using a card number and expiry date. You may set up a regular payment arrangement authorising an organisation or business to regularly debit your card account using your card details. This is an agreement between you (the cardholder) and the organisation. When you receive a new card, you should advise those organisations of your new card expiry date and if the card was lost or stolen, the new card number. Until you notify the organisation of the new details, they will continue to use the former details and future transactions may be declined. You may only use your Card to perform transactions on your Salary Packaging Card Account. If your Card is paywave enabled, then it may be possible for your Card to be used to pay for transactions that are under $100.00 by using the Visa paywave functionality at Visa paywave participating merchants. Before authorising a Visa paywave transaction by waving your Card over the merchant s enabled Visa paywave terminal, you must check that the correct amount is displayed on the Visa paywave terminal. If your transaction exceeds $100.00, you will be required to enter your PIN. Your Card will be registered with Verified by Visa. Verified by Visa is a program designed to authenticate online transactions. This means that when you use your Card online to make a purchase at a Verified by Visa Participating Merchant, your identity may need to be validated if the relevant transaction is deemed to be high risk. In certain circumstances, if your transaction is deemed to be very high risk, the transaction will be declined. If you are unable to validate your identity, your Card may be suspended. For assistance in these circumstances or to learn how your Card may be unsuspended, please contact us during normal business hours (refer to our website bankvic.com.au for current business hours). We do not warrant or accept any responsibility if an Electronic Banking Terminal does not accept your Card. You should always check with the relevant merchant that it will accept your Card before purchasing any goods or services. You must not use your Card for any unlawful purpose, including the purchase of goods or services prohibited by the laws of Australia and/or the laws of the location where the Card is used or where the goods or services are provided. Should your Card be used for unlawful purposes, we may restrict you from accessing any available funds from your Account. It is an offence under Australian law to conduct transactions on an account which may lead to an actual or attempted evasion of a taxation law, or an offence under any other Commonwealth or Territory law. Where we have reasonable grounds to suspect that such transaction(s) have occurred on your Account, we are obliged to report such suspicion to the Australian Transaction Reports and Analysis Centre. Should your Card be used for unlawful purposes, we may restrict you from accessing any available funds from your Account. To facilitate the processing of transaction information, your Card details and transaction details may be processed by Visa in countries other than Australia. By using your Card, you agree that information regarding any transactions may be processed outside of Australia. In the first instance, we will debit your Account (which will reduce the balance of your Account) with the value of all transactions carried out: by using your Card at an Electronic Banking Terminal; by using your Card number (for example, using your Card number to conduct a telephone or internet transaction); or when your Card is presented to a merchant (or someone else on behalf of a merchant) in a way acceptable to us. Fraudulent transactions can arise from use of your Card or Card number. Where you advise us that a transaction that has been debited (deducted) from your Salary Packaging Card Account is fraudulent, unauthorised or disputed, we will investigate and review that transaction in accordance with section 22 of this PDS. We are not responsible in the event that you have a dispute regarding the goods or services purchased using your Card. In the first instance, you should contact the merchant directly. If you cannot resolve the dispute with the merchant, we have the ability in certain circumstances to investigate disputed transactions on your behalf (refer to section 22 below for a list of circumstances when we can investigate disputed transactions) and attempt to obtain a refund for you. 5
13. USING YOUR CARD OUTSIDE AUSTRALIA All transactions conducted overseas will be converted into Australian dollars. Transactions will either be converted directly into Australian dollars or will be first converted from the currency in which the transaction was made into US dollars and then converted to Australian dollars by Visa. The conversion rate used is either: a rate selected by Visa from a range of rates available in wholesale currency markets for the applicable processing date, which may vary from the rate Visa receives; or the government-mandated rate in effect for the applicable processing date. A currency conversion fee may be payable when you make a transaction on your Card in a currency other than Australian dollars, or you make a transaction on your Card in any currency (including AUD) that is processed by a card scheme or billed by the merchant outside of Australia. You will be advised by us whether a currency conversion fee applies and the amount of this fee at the time you apply for your Card. 14. TRANSACTION LIMITS You agree that you will NOT use your Card to: overdraw the balance in your Salary Packaging Card Account; We: may set temporary or permanent limits on the minimum and maximum amounts that you may transact from your Salary Packaging Card Account on any one day through the Electronic Banking Terminal; and will advise you of any daily transaction limits that apply at the time of your application of your Card. Where we impose a temporary minimum or maximum limit, we will use reasonable endeavours to notify you that it has imposed a temporary transaction limit. A temporary maximum transaction limit will usually be imposed in circumstances where transactions appear to be suspicious or fraudulent. Where we impose a new permanent minimum or maximum transaction limit, we will inform you of this change in accordance with the requirements set out in section 27 of these Terms and Conditions. Merchants offering EFTPOS facilities have the right to impose conditions on the use of such facilities. This can include imposing their own transaction limits, or restrictions on the value that you may obtain using your Card. 15. AUTHORISATIONS AND PROCESSING OF TRANSACTIONS Certain transactions that you make using your Card may need to be authorised by us before they can proceed. In these circumstances, prior to the transaction being completed, the relevant merchant s financial institution will obtain authorisation from us for the transaction to be processed. Once authorisation is obtained, it will reduce the amount of available funds in your Account. If circumstances occur where authorisation is obtained by us but the relevant transaction is not completed, your available funds in your Account may be reduced for a period of time. Transactions will not necessarily be processed to your Account on the same day they occur. The date that you conduct the transaction is referred to as the transaction date. Some transactions will be processed after the transaction date. This is usually due to the relevant merchant s financial institution not processing the relevant transaction on the transaction date. We have the right to refuse authorisation for you to effect a transaction if: we have restricted access to your Salary Packaging Card Account in accordance with section 18 of these Terms and Conditions; in accordance with section 31 of these Terms and Conditions, we believe on reasonable grounds that the transaction is fraudulent or suspicious; or the transaction will result in you overdrawing your balance in your Account. 16. ADDITIONAL CARDS We may allow you to apply to us and request that an additional Visa card be given to your nominee (referred to as an Additional Cardholder). We are not obliged to grant any additional Cards. We are required to comply with all laws governing the issuing of debit cards (including identification and verification of any additional Cardholders in accordance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2016 and other relevant legislation). When we issue an Additional Card at your request: you must ensure that each Additional Cardholder receives a copy of this PDS and any updates we make from time to time, reads them and protects their card and PIN and any other passcode in the same way that this PDS requires you to protect your card and PIN and any other passcode. If an Additional Cardholder does not comply with the terms of this PDS, you will be liable (in the first instance) for all transactions carried out by use of the Additional Card. fraudulent or unauthorised transactions can occur on debit cards. Where you (or your Additional Cardholder) advise us that a transaction that has occurred on your Card or your Additional Cardholder s Card is fraudulent, unauthorised or disputed, we will investigate and review that transaction in accordance with section 22 below; you authorise us to give to any Additional Cardholder information about your accounts for the purposes of their use of the Additional Card. You also authorise us to act on the instructions of the Additional Cardholder in relation to their use of their Additional Card, except to the extent that any such instructions relate to the termination of your accounts or the replacement of an Additional Card following cancellation of that Card by you; and you can cancel the Additional Card at any time by cutting it in half diagonally including cutting in half any chip on your Card and either returning the pieces to 6
us and requesting the Additional Card be cancelled or by advising us that you have destroyed the Additional Card and disposed of the pieces securely. If you cannot destroy the Additional Card you should contact us by telephone and request that we place a stop on your Account. If an Additional Cardholder does not comply with these conditions you will be in breach of the conditions set out in this PDS (refer to section 19 below). 17. RENEWAL OF YOUR CARD We will forward to you and your Additional Cardholder a replacement Card before the expiry date of your current Card or Additional Card, provided that you are not otherwise in breach of the conditions set out in this PDS. If you do not require a replacement Card, either for yourself or your Additional Cardholder, you must notify us before the expiration date of your current Card. You must give us a reasonable time to arrange cancellation of the issue of a replacement Card. We may issue a new Card to you or your Additional Cardholder at any time. All reissued Cards are subject to the conditions within this PDS. We will typically do this in circumstances where we consider that the security of your Card or PIN may have been compromised or where we are required to issue new Cards to all our Cardholders as a result of any payment scheme rule changes. In these circumstances, you will not be charged any replacement Card fee. 18. CANCELLATION OF YOUR CARD We may cancel your Card issued to you and your Additional Cardholder at any time: for security reasons where your Card has been or is reasonably suspected by us to have been compromised and such compromise has been caused directly by you, an Additional Cardholder or any other third party as a result of your conduct; if you breach these conditions and you fail to remedy that breach within 14 days after receiving a written notice from us requesting you to remedy the breach; if you close your Account; if you cease to be a client or member of BankVic; if your Employer instructs BankVic to terminate the card. For example, a Cardholder is no longer employed at the Employer; if you alter the authorities governing the use of your Account (unless we agree otherwise). We may also capture your Card at any Electronic Banking Terminal. In these circumstances, we will notify you that your Card has been cancelled. Where possible, we will provide you with at least seven (7) days notice of our intention to restrict the ability for you to access any available funds from your Account by using your card. 7 You may cancel your Card or your Additional Cardholder s Card at any time by contacting us. 19. CONDITIONS AFTER CANCELLATION OR EXPIRY OF YOUR CARD You must not use your Card or allow your Additional Cardholder to use his or her Additional Card: after it has been cancelled or restricted; or after the expiry date shown on the face of the Card. In some circumstances your Card may have pending transactions yet to settle on your account at the time of cancellation. You will be liable to us for the value of any transaction as well as any reasonable costs incurred by us in collecting the amounts owing. Any such amounts are immediately due and owing upon demand by us. Where a Card has been cancelled by your Employer or BankVic, or you have terminated the Card Account under this clause: the Card and the Additional Card must not be used; Any unspent amounts on cancellation of your Card or termination of the Card Account will be transferred back to the Employer s account; You have no entitlements to the credit balance of the Card Account following such cancellation or termination. 20. YOUR LIABILITY IN CASE YOUR CARD IS LOST OR STOLEN OR IN THE CASE OF UNAUTHORISED USE 1. You are not liable for any loss arising from unauthorised use of your Card: a. where the losses are caused by the fraudulent or negligent conduct of: i. BankVic; ii. our employees or agents; iii. companies involved in networking arrangements; or iv. merchants or agents or employees of merchants; b. before you have actually received your Card and/or PIN (including a reissued Card and/or PIN); c. subject to section 19, where the losses relate to any component of your Card or PIN being forged, faulty, expired or cancelled; d. where the losses are caused by the same transaction being incorrectly debited more than once to your Account; e. after you have reported your Card lost or stolen or reported the breach of the security of your PIN;
f. if you did not contribute to any unauthorised use of your Card; or g. if the unauthorised transaction was made using your Card information without use of your actual Card or PIN. 2. For the purpose of section 20(1)(b), there is a presumption that you did not receive your Card unless we can prove that you received your Card by, for example, obtaining an acknowledgment of receipt from you or (if applicable) obtaining record of your activating your Card. 3. For the purpose of section 20(1)(f), we will undertake an assessment to consider whether you have contributed to any loss caused by unauthorised use of your Card. This assessment will include a review of whether you: a. voluntarily disclosed your PIN to anyone, including a family member or friend; b. voluntarily allowed someone else to observe you entering your PIN into an Electronic Banking Terminal; c. wrote or indicated your PIN on your Card; d. wrote or indicated your PIN (without making any reasonable attempts to disguise the PIN) on any article carried with your Card or likely to be lost or stolen at the same time as your Card; e. allowed anyone else to use your Card; f. unreasonably delayed notification of: i. your Card or PIN record being lost or stolen; ii. unauthorised use of your Card; or iii. the fact that someone else knows your PIN; or 4. Where a transaction can be made using your Card but does not require your PIN, you are liable only if you unreasonably delay reporting the loss or theft of your Card. 5. If we can prove on the balance of probability that you have contributed to the unauthorised use of your Card under section 20(3) your liability will be the lesser of: a. the actual loss when less than your account balance (including the unused portion of any credit limit provided by us under any pre-arranged credit facility); b. your account balance (including the unused portion of any credit limit provided by us under any prearranged credit facility); c. an amount calculated by adding the actual losses incurred for each day or for each relevant period, up to the current daily or other periodic withdrawal limit, on which unauthorised use occurred before you reported the loss, theft or unauthorised use of your Card or breach of PIN security, up to and including the day you make your report; or d. the amount for which you would be held liable if any Card scheme rules, such as Visa s scheme rules, applied (if you wish to find out what Card scheme rules apply to transactions made using your Card, please contact us). 6. In assessing your liability under section 20(5)(c): a. where your Visa card has been lost or stolen, the number of days will be calculated by reference to the day when you should reasonably have become aware that it was lost or stolen; and b. the current daily withdrawal limit is the limit applicable at the time of the transaction by reference to the status and/or type of Electronic Banking Terminal at which the transaction occurred. 7. Where a PIN was required to perform the unauthorised transaction and it is unclear whether or not you have contributed to any loss caused by the unauthorised use of your Card, your liability will be the lesser of: a. $150, or a lower figure determined by us; b. your account balance (including the unused portion of any credit limit provided by us under any prearranged credit facility); c. the actual loss at the time we are notified of the loss or theft of your Card or the breach of your PIN security, excluding the portion of the losses incurred on any one day which exceeds any relevant daily transaction or other periodic transaction limit; or d. the amount for which you would be held liable if any card scheme rules, such as Visa s scheme rules, applied (if you wish to find out what card scheme rules apply to transactions made using your Card, please contact us). 8. In assessing your liability under this section 20: a. we will consider all reasonable evidence including all reasonable explanations for an unauthorised use having occurred; b. the fact that an account is accessed with the correct PIN, while significant, is not of itself conclusive evidence that you have contributed to the loss; c. the use or security of any information required to perform a transaction that you are not required to keep secret (for example, your Card number and the expiry date on the front of your Card) is not relevant to your liability; and d. the portion of losses incurred that you and the Financial Institution had not agreed could be accessed using the Card and/or PIN that was used to perform the unauthorised transaction shall be excluded from the calculation of your liability. 9. Your liability for losses occurring as a result of unauthorised use will be determined under the Code. The guidelines set out at the beginning of this PDS, are the minimum suggested security measures you should take. If you disagree with our resolution process, you should contact us and request that we review our decision in accordance with section 22. 21. VISA ZERO LIABILITY In addition to the limits placed on your liability pursuant to the Code and described in section 20 above, Visa s scheme rules provide that we, as the financial institution shall limit your liability to nil in the following circumstances: the unauthorised transaction(s) were not effected at an ATM (and will include transaction(s) effected prior to notification of: (i) the unauthorised transaction(s); or (ii) lost or stolen Card, by you to us); 8
you have not contributed to any loss caused by unauthorised use of your Card as described in section 20(3); and you have provided all reasonably requested documentation to us, which may include provision of a statutory declaration and police report. Where this Visa zero liability section applies, we will endeavour to refund the amount of the unauthorised transaction(s) within five (5) days, subject to: you having provided all reasonably requested information to us; you are not otherwise in default or have breached these Conditions of Use; or we have not reasonably determined that further investigation is necessary before refunding the amount of the unauthorised transactions based on: i. the conduct of the Account; ii. the nature and circumstances surrounding the unauthorised transaction(s); and iii. any delay in notifying us of the unauthorised transaction(s). Any refund is conditional upon the final outcome of our investigation of the matter and may be withdrawn by us where we consider that this section shall not apply as a result of that investigation. In making any determination in respect of this section, we will comply with the requirements of section 22 of this PDS. 22. RESOLVING ERRORS AND DISPUTES If you believe a transaction is wrong or unauthorised or your account statement contains any instances of unauthorised use or errors, you must immediately notify us or the Visa card 24 Hour Emergency Hot Line as explained in section 11. As soon possible, you must also provide the following: your name and address, account number and Visa card number; details of the transaction or the error you consider is wrong or unauthorised; the dollar amount and an explanation as to why you believe it is an unauthorised transaction or an error; the names of other users authorised to operate the Account; details of whether your Card is signed and PIN is secure; and any other details required by us. However, if we are unable to settle your complaint within 5 Business Days, we will advise you in writing of the procedures for further investigation and resolution under our Internal Dispute Resolution Scheme and may request further relevant details from you. Within 21 Business Days of receiving these further relevant details from you, we will: advise you in writing of the results of our investigations; or advise you in writing that we require further time (not exceeding a further 24 days) to complete our investigation. An investigation will continue beyond 45 days only in exceptional circumstances, for example, if there are delays caused by other financial institutions or merchants involved in resolving the complaint or in circumstances where we investigate the relevant transaction under the relevant scheme rules that apply (for example, Visa s scheme rules). If we find that an error was made, we will make the appropriate adjustments to your account including interest and charges (if any) and will advise you in writing of the amount of the adjustment. If: 1. We are a party to an industry dispute resolution scheme; and 2. that scheme provides a matter can be heard under the scheme if we do not give a final decision on the matter within a specified time, we will advise you in writing about the option of taking the matter to the scheme within 5 business days after the specified time period expires. When we advise you of the outcome of our investigations, we will: give you reasons in writing for our decisions by reference to this PDS and the Code; advise you of any adjustments we have made to your Account; and advise you in writing of other avenues of dispute resolution (including Consumer Affairs Agencies and Small Claims Courts), if you are not satisfied with our decision. If we decide that you are liable for all or any part of a loss arising out of unauthorised use of your Card, we will: give you copies of any documents or other evidence we have relied upon; and advise you whether or not there was any system or equipment malfunction at the time of the transaction. If we fail to carry out these procedures or cause unreasonable delay, we may be liable for part, or all, of the amount of the disputed transaction where our failure or delay has prejudiced the outcome of the investigation. We have the ability to investigate disputed transactions which occur on your Card. The Visa scheme has a dispute resolution process that is contained in Visa s operating rules. The process sets out specific circumstances and timeframes in which a member of the scheme (for example, a credit union, a bank or another financial institution) can claim a refund in connection with a disputed transaction on a cardholder s behalf. This right is referred to as a chargeback right. Accordingly, our ability to investigate a disputed transaction on your behalf is limited to the time frames imposed pursuant to the Visa scheme rules. The timeframes vary between 75 days and 120 days so it is important that you notify us as soon as you become aware of a disputed transaction. You may wish to dispute a transaction in circumstances where: the transaction is not recognised by you; you did not authorise the transaction; 9
you did not receive the goods or services to which the transaction relates; the transaction amount differs to the purchase amount; you believe a transaction has been duplicated; or if you are not satisfied with the decision, you may wish to take the matter further. You may for instance contact the Financial Ombudsman Service or any other dispute resolution body which we utilise and advise from time to time. The Financial Ombudsman Service s contact details are: GPO Box 3 MELBOURNE VIC 3001 Toll Free Call: 13 63 73 Email: info@fos.org.au Website: www.fos.org.au 23. MALFUNCTION Other than to correct the error in your Account and the refund of any charges or fees imposed as a result, we will not be liable to you for any loss caused by an Electronic Banking Terminal malfunctioning if you were aware, or should have been aware, that the terminal was unavailable for use or was malfunctioning. Where an EFTPOS Device is not working, the merchant may provide alternative manual processing of the transaction. You will be required to present your Card and sign a voucher. The voucher authorises us to debit your Account with the amount of the transaction (which will reduce the balance in your Account). 24. STATEMENTS AND RECEIPTS A transaction record slip will be available for each financial transaction carried out with your Card at an Electronic Banking Terminal. You should obtain, check and retain all transaction record slips including sales vouchers issued to you for checking against your account statements. We will provide a statement of the account through our Internet banking for each calendar month where there is any financial activity on the account. In all cases we will provide you with an electronic statement of the account at least every 6 months. You may request a copy of your account statement at any time. You should check with us whether fees and charges will apply in these circumstances. 25. FEES AND CHARGES We reserve the right to charge a fee in accordance with the agreement we have with your Employer, for any transaction at an Electronic Banking Terminal or for issuing additional or replacement cards. We are authorised to debit your Account with those fees (which will reduce the balance in your Account). If you consider that we have incorrectly charged a fee or charge, you may dispute this by contacting us in accordance with section 12. Any incorrectly charged fee or charge will be reversed by us. You will be advised by us of any applicable fees and charges at the time you apply for your Card. These fees and charges may change from time to time and you will be notified of new fees in accordance with section 27. Details of applicable fees and charges, including; card replacement fee for replacement cards issued in Australia and overseas; voucher production fee where you require production of a transaction voucher (this will be waived if the voucher establishes the transaction was not authorised); are set out in our fees and charges which is available on our website bankvic.com.au or on request; In some circumstances, BankVic and your Employer may enter into arrangements where the manner in which the fees are charged and/or the amount charged differs to those specified in this PDS. Your Employer will advise you of these charges. Fees and charges for this product are located on the BankVic website bankvic.com.au/salarypackaging 26. GOVERNMENT FEES AND CHARGES We reserve the right to pass on any fees, charges, duties and taxes that are imposed on the use of your Card by government or by any regulatory authority. We are also authorised to debit your Account with those fees, charges, duties and taxes (which will reduce the balance in your Salary Packaging Card Account). 27. CHANGES TO CONDITIONS OF THIS PRODUCT We reserve the right to change the Terms and Conditions and to vary the fees and charges that apply to your Card. If you wish to cancel your Card as a result of any change or variation we make, you must contact us to cancel your Card. In these circumstances, you will not be charged any additional fees or charges associated with us cancelling your Card. If you retain and use your Card after notification of any changes, your use of your Card shall be subject to those changes. We will notify you in writing at least 20 days before the effective date of a change if it will: reduce the number of fee free transactions on the account permitted at Electronic Banking Terminals; impose a fee or charge; increase a fee or charge; or increase your liability for unauthorised use. The notice period for other variations will be in accordance with the industry code of practice. We may notify you of changes either through: a letter or other direct communication to your last known address; 10
notification through electronic means; notices on, or sent with account statements; announcement in our newsletter; notice on our website; press advertisements; notices on Electronic Banking Terminals or in branches. In addition, in the last three cases, we will give you written advice of the changes at the time of your next account statement. If a written notice is delivered to you personally, the date of delivery is the date you receive the notice. Written notice will not be given of a variation that is required by an immediate need for us to restore or maintain the security of our systems or your account. 28. OTHER GENERAL CONDITIONS These Terms and Conditions govern your Card s access to and each transaction on your Salary Packaging Card. The PDS will prevail except to the extent they are contrary to any applicable legislation, the Code or any relevant industry code of practice. You may not assign your rights under these Terms and Conditions to any other person. We may assign our rights or transfer the contract to another person where such assignment is to a related party or third party where such third party has a similar or fairer dispute resolution procedure than us. If we assign or transfer the rights under these Terms and Conditions, the Terms and Conditions will apply to the transferee or assignee as if it were named as us. If we assign the Terms and Conditions, we will provide you with notice and you will be able to cancel your Card as a result of this assignment without being charged any fees or charges associated with us cancelling your Card. 29. PRIVACY You agree that information about you (including credit Information about you and the account) may be given to and obtained from any credit reporting agency, other credit providers, and person providing services in connection with the administration of your application or account (including your Employer) or given to any person for the marketing of our services or those of any body corporate related to us. 30. THIRD PARTY DISCLOSURE We may provide your personal information to: Your Employer - this will consist of account transaction and balance information to confirm adherence to your Employer s FBT compliance requirements; any outsourced service providers (for example, mailing houses, fraud monitoring services and data switch services); transaction and investigation security firms; regulatory bodies, government agencies, law enforcement bodies and courts; and participants in the payment system and other financial institutions for the purpose of resolving disputes, errors or other matters arising from your use of your Card or Card number or third parties using your Card or Card number. You consent to us disclosing your personal information to any of the third parties referred to above. To facilitate transaction investigation and to assist with identification of suspicious or fraudulent transactions, your personal information and transaction details may be sent to countries other than Australia. By using your Card, you agree that your personal information and transaction details may be sent overseas. 31. ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING (AML) You agree that: where required, you will provide to us all information reasonably requested by us in order for us to comply with the fraud monitoring and anti-money laundering and counter terrorism financing obligations imposed on us pursuant to the AML Legislation and the Visa scheme rules; we may be legally required to disclose information about you and the Additional Cardholder to regulatory and/or law enforcement agencies; we may block, delay, freeze or refuse any transactions where we in our sole opinion consider reasonable grounds exist to believe that the relevant transactions are fraudulent, in breach of the AML Legislation, any Visa scheme rules or any other relevant law; where transactions are blocked, delayed, frozen or refused by us in accordance with this section 31, you agree that We are not liable for any loss suffered by us, you, any Additional Cardholder or other third parties arising directly or indirectly as a result of us taking this action; and we will monitor all transactions that arise pursuant to your use of your Card in accordance with our obligations imposed on us in accordance with the AML Legislation and the Visa scheme rules. 32. DEFINITIONS Account means an account (or accounts) you have with us to which you may obtain access by use of the Card. Additional Cardholder means the person(s) who from time to time is/are issued with an additional Card for use on the Account. AML Legislation means the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and its associated rules, regulatory guides and regulations. 11